Submission
Which option do you prefer?
Option Two – The alternative option – Keep Aurora Energy
Further comment
I don't consider this to be a complete proposal. Reading through the consultation document, I note that the Directors of Aurora have recommended against other options - including splitting the company up (selling part of the network while retaining the remainder).
This is clearly the best option.
The Directors commentary that splitting the company will result in parts which won't attract buyers is clearly misguided. The option which I feel is best for the Dunedin community is to split the Central Otago and Queenstown Lakes portion of the network off, and sell that. Leave the remaining Dunedin network in Dunedin ratepayer ownership.
To state that this portion of the network is unsellable is laughable. This region is the fastest growing region in New Zealand, which surely results in the fastest growing network connections in New Zealand. Any utility/infrastructure investment company will be happy to purchase a network which is growing at pace - with returns guaranteed by the Commerce Commission.
Funds from this sale can be used to pay down existing Aurora debt, having only the Dunedin network will also reduce complexity and maintenance on the network (Aurora asset management plan shows more spending required in Central Otago/Queenstown, capital and Capex, as this is a more complex area) - this will result in increased profits which in turn will be increased dividends to Dunedin ratepayers.
Why is this not an option?
Selling utilities into private hands has not worked out well for NZ - please don’t make the same mistake for your ratepayers.
Supporting information
No associated documents with this submission.
Submitter
Submission id number: 1044463
Submitter name:
Stephen Fraser
Organisation